Today we took profits on our long puts in Apache (APA). This “hedge” has worked out incredibly well. We ended up with a profit of +$317.00 in the contract and that drives our “real” cost basis all the way down toward $23/share if at expiration we get “put” the stock from the 27.50 strike put we originally sold. This was all discussed in class so watch the recording for more details.
Sell to close: APA Sep 20th (monthly) 30.00 strike put
Credit: 4.95
Have a great week!